2003 House Bill 4612 / 2004 Public Act 306

Raise Detroit casino tax

Introduced in the House

May 1, 2003

Introduced by Rep. Rich Brown (D-110)

To allow horse racing theaters and betting at casinos. The bill includes regulations, licensure and tax provisions, and penalties. It is part of a racetrack gambling package ("racino") comprised of House Bills 4609 to 4612. Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill would require a three-quarters vote of the House and Senate.

Referred to the Committee on Agriculture and Resource Management

May 20, 2003

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

May 22, 2003

Substitute offered

To replace the previous version of the bill with one recommended by the committee which reported it. The substitute incorporates changes resulting from negotiations and deliberations related to the specific regulations on the proposed new gambling, and on how the revenue from it will be divided.

The substitute passed by voice vote

May 4, 2004

Substitute offered by Rep. Larry Julian (R-85)

To replace the previous version of the bill with one that would also increase the state tax on Detroit casinos, from 18 percent to 36 percent. See House-passed bill for details.

The substitute passed by voice vote

May 12, 2004

Substitute offered by Rep. Larry Julian (R-85)

To replace the previous version of the bill with one that would also increase the state tax on Detroit casinos, from 18 percent to 36 percent. See House-passed bill for details. This substitute also revises details but does not change the substance of the previous substitute, which first inserted the 36 percent Detroit casino tax.

The substitute passed by voice vote

Amendment offered by Rep. Ken Daniels (D-2)

To revise details of the formula by which Detroit would get 29.6 percent of the increased tax revenue.

The amendment passed by voice vote

Passed in the House 85 to 20 (details)

To increase the state tax on Detroit casinos, from 18 percent to 36 percent, and to allow horse racing theaters and betting at casinos. The higher tax and increased gambling is projected to increase state revenue by $90 million a year. Of this, 29.6 percent would go to Detroit, 47.5 percent would go to schools, and 22.9 percent would go to the state general fund. Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill would require a three-quarters vote of the House and Senate.

Received in the Senate

May 13, 2004

Referred to the Committee of the Whole

June 17, 2004

Failed in the Senate 18 to 19 (details)

July 6, 2004

Received

Substitute offered by Sens. Bob Emerson (D-27) and Ken Sikkema (R-28)

To replace the previous version of the bill with one that increases the casino tax by six percent, strips out the horse racing theaters and betting at casinos, and makes other changes. See Senate-passed version.

The substitute passed by voice vote

Amendment offered by Sen. Bob Emerson (D-27)

To clarify that the state's portion of the lower tax rate assessed after the Detroit casinos build their permanent facilities and hotels will go entirely into the general fund.

The amendment passed by voice vote

Failed in the Senate 28 to 8 (details)

To increase the state tax on Detroit casinos, from 18 percent to 24 percent, with the state getting four percent of the increase and the city getting two percent.

Received

A motion to vote again on the tax increase. The vote then took place after the Senate Majority Leader issued a "call of the Senate," meaning all senators must remain on or return to the floor. The State Police were dispatched to retrieve two senators absent for the day (Bernero and Scott), but this was canceled after Sen. Olshove switched his vote from "no" to "yes," thereby producing the 29th "yes" vote.

Amendment offered by Sen. Gilda Jacobs (D-14)

To tie-bar the bill to House Bill 4610, meaning this bill cannot become law unless that one does also. HB 4610 would authorize the placement of slot machines in horse racetracks ("racinos").

The amendment failed by voice vote

Amendment offered by Sen. Bob Emerson (D-27)

To further clarify that the four percent state portion of the tax increase would only drop to one percent if the Detroit casinos build hotels as part of their permanent facilities.

The amendment passed by voice vote

Passed in the Senate 29 to 7 (details)

To increase the state tax on Detroit casinos, from 18 percent to 24 percent, with the state getting four percent of the increase and the city getting two percent. This is projected to increase state revenue by $49 million a year. If the Detroit casinos build permanent facilities and hotels, the four percent state portion of the tax increase would drop to one percent. (Detroit will still get a two percent increase based on a previous and separate deal to increase its take from the casinos beginning in 2006). Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill requires a three-quarters vote of the House and Senate.

Received in the House

July 6, 2004

Failed in the House 15 to 89 (details)

To concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

July 14, 2004

Received

Aug. 4, 2004

Failed in the House 0 to 107 (details)

To raise the state tax on Detroit casinos, from 18 percent to 24 percent through 2005, and then drop it to 22 percent in 2006. This is projected to boost state revenue by $49 million a year. If the Detroit casinos do not build permanent facilities and hotels, the tax would rise by one percentage point per year in 2009, 2010 and 2011. If the race track slot machines (“racinos”) proposed by House Bill 4610 are allowed, the tax would revert to the current level.

Received in the Senate

Aug. 4, 2004

Failed in the Senate 28 to 6 (details)

To increase the state tax on Detroit casinos, from 18 percent to 24 percent through 2005, and then drop to 22 percent in 2006. This is projected to increase state revenue by $49 million a year. If the Detroit casinos do not build permanent facilities and hotels, the tax would rise by one percentage point per year in 2009, 2010 and 2011. If the race track slot machines (“racinos”) proposed by House Bill 4610 are allowed, the tax would revert to the current level.

Received

Motion to reconsider

A previous vote to defeat the second conference report on the bill.

The motion passed by voice vote

Passed in the Senate 30 to 6 (details)

A second conference report, which raises the tax on Detroit casinos from 18 percent to 24 percent, increasing state revenue by $49 million a year. If the casinos do not build permanent facilities and hotels, the tax would be increased another three percent. If the "racinos” proposed by House Bill 4610 are allowed, the tax would drop to the current level. Some $6 million of the new revenue would go to agricultural interests such as horse race prizes, fairs, and 4-H clubs. Because it amends an initiated law passed by the people (authorizing he Detroit casinos), a three-quarters vote of the House and Senate is required.

Received in the House

Aug. 4, 2004

Passed in the House 93 to 15 (details)

Signed by Gov. Jennifer Granholm

Aug. 17, 2004